Contractor payroll software tools ensure you pay your independent contractors on time while freeing up your human resource staff and accountants so that they can concentrate on more  critical tasks. With payroll software, you can also manage payroll taxes and deductions with ease.

In this article, we will review the top seven contractor payroll services of 2023 to help you support your staff and improve your payroll operations.

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Features comparison table for top contractor payroll software

Feature Gusto Rippling Paychex Justworks Papaya Square OnPay
Payroll in all 50 U.S. states Yes Yes Yes Yes Yes Yes Yes
Contractor self-service options Yes Yes Yes Yes Yes Yes Yes
Mobile apps Yes Yes Yes Yes Yes Yes Yes
International payroll processing Yes Yes No No Yes No No
Stand-alone contractor payroll package Yes No No No Yes Yes No
Time tracking Yes Yes Yes Yes Yes Yes No

Top contractor payroll services of 2023

Gusto: Best contractor payroll software for new users

The Gusto logo.
Image: Gusto

Gusto is a contractor payroll software ideal for new users. It is designed to offer modern HR features such as payroll, benefits, hiring and management resources. The vendor serves over 200,000 small and large companies.

The software comes with competitive compensation tools and expert guidance to help small businesses stay compliant. In addition, it is a cloud-deployable SaaS payroll tool with an easy-to-use interface. The cherry on the top is a wallet app for contractors to easily track their entitlements.


Gusto is a comprehensive payroll software that offers a range of features, including automated tax filing, employee onboarding, direct deposit and more. It also provides an easy-to-use interface that allows you to manage your payroll with ease.

  • Contractor self-service options : Contractors can take advantage of the self-service options available, allowing them to manage their own information and documents.
  • Unlimited payroll runs : With unlimited payroll runs, businesses can run as many payrolls as they need without any extra fees or charges.
  • 1099-NECs at the end of the year : Gusto also offers comprehensive tax filing capabilities, taking care of contractor payroll tax filing.
  • Completely automated payroll : For those who want a completely automated payroll process.
  • Four-day direct deposit option : This feature allows contractors to receive their payments quickly and securely.
  • New hire reporting : Business owners can file new hire forms with the state quickly and efficiently.


  • Unique contractor and employee benefits options.
  • Does not charge extra for payroll tax filing.
  • Free insurance add-ons.
  • International contractor payments are available as an add-on.


  • Time tracking feature is pretty basic with room for improvement.


For contractor-based companies, the first six months are free. Customers only pay $6 per month per contractor.